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Quincy Krosby's Q4 2017 Commentary: The End Game

Quincy Krosby's Q4 2017 Commentary: The End GameThe end of the year is rapidly approaching, and anyone overwhelmed by recent headlines may be forgiven for thinking a little holiday cheer can’t come soon enough. Quincy Krosby, Prudential’s chief market strategist, leads us through potentially positive and negative indicators in her Q4 2017 market commentary: The End Game.

The third quarter earnings season is promising to deliver positive results as a seemingly synchronized global economic recovery helps to underpin market performance. The fourth quarter tends to be, statistically at least, the most hospitable for markets, while the third quarter is known for heightened volatility. 

This is not to say that fears have completely abated regarding the market’s ability to finish the year higher—especially if Washington can’t deliver a tax package and geopolitical tensions continue to escalate. The Federal Reserve enters the fourth quarter implementing its plan to unwind slowly the $4.5 trillion balance sheet accrued during the financial crisis, but questions remain surrounding future rate hikes and who will head the Fed as Chair Janet Yellen’s tenure ends in February 2018.

The market’s job, of course, is to look ahead and focus on what’s important to it, namely earnings, economic fundamentals and the level of risk that’s commensurate with valuations. Investors will focus on the upcoming earnings season, the details of tax reform and monetary policy, and before long will be reading the tea leaves for 2018.

Highlights:
  To read the full outlook, click here: The End Game.

Want to speak with Quincy Krosby about what’s happening in the markets? Please contact Lisa Bennett at 973-802-2894 or Dara Scerbo at 973-367-9318.